EU to impose counter tariffs on $28 billion of US goods
Human and political impact
- Many see tariffs as elites’ “wealth transfer” tools, with ordinary people worldwide bearing higher prices and job losses for little visible benefit.
- Some argue crises (2008, COVID, now tariffs) reliably enrich those at the top, including Trump and allied billionaires.
- Others emphasize that voters, especially an “angry pro‑misery constituency,” are partly responsible: they elect leaders promising policies that hurt them and others.
Responsibility for the trade war
- Strong view that this round is “very much US‑made,” with other countries forced into defensive retaliation to protect sovereignty and exports.
- Others note that many governments, not just the US, use policies that impose “misery for no discernible benefit.”
Tariff design: goods vs digital services
- Question: why target low‑margin goods (steel, meat, textiles, eggs) instead of high‑margin US services (cloud, software, platforms)?
- Multiple replies stress it’s technically and legally hard to “tariff software”: services are sold via local subsidiaries, run in local datacenters, and don’t cross a physical border.
- Attempts to tariff data flows (“toll‑wires,” packet tariffs, Great Firewall‑style blocking, selective IP payments) are seen as either impractical, legally fraught, or edging toward authoritarian models.
Effectiveness and targeting of tariffs
- View that tariffs should hit substitutable goods (agriculture, basic manufactures) where buyers can quickly switch to other suppliers, limiting domestic damage.
- Lists and prior episodes suggest EU/Canada aim at “red state” products to maximize political pressure on Trump while minimizing harm to EU consumers.
- Others doubt this works: Trump’s base may accept pain or seek “revenge,” and many EU citizens barely buy the targeted US goods anyway.
EU strategy, leverage, and internal debate
- Split among EU commenters:
- One camp dislikes counter‑tariffs, seeing them as punishing EU consumers in response to US choices.
- Another insists reciprocity is essential; without it, US exports gain an “unfair advantage” and EU jobs, tax base, and bargaining power erode.
- Some argue tariffs on indispensable US tech would just tax EU citizens and cripple EU competitiveness, given lack of homegrown alternatives.
- Broader critique: EU is over‑bureaucratic, militarily and industrially weak, too dependent on others; others counter that EU integration and transfers have clearly benefited poorer members and created large export markets.
Currency and geopolitical context
- Commenters note the irony of a reserve‑currency issuer claiming to be “cheated,” since global dollar use yields seigniorage and geopolitical leverage.
- Alternative reserve currencies (notably the euro) are discussed, but constraints like sanctions, capital controls, and limited euro issuance are noted.
- Some see US tariff policy as sabotaging its own long‑term interests; others invoke “stupidity over malice.”
Democracy, coups, and historical analogies
- A minority rhetoric likens severe tariffs to a “blockade” or “decapitation strike” on the US, blaming domestic institutions (military, courts) for not stopping a destructive administration.
- Pushback stresses that military intervention against an elected government would itself be a coup.
- Historical analogies (Hitler’s rise, the Irish famine) are used to debate whether Trump’s actions are part of a coherent plan or reckless populism accidentally doing huge damage.
Prospects: negotiation, escalation, and alliances
- Some expect tariffs to be a bargaining chip leading to eventual trade deals, citing EU–China solar disputes as precedent.
- Others speculate about broader coordination: EU, Canada, China, Mexico, etc. harmonizing counter‑tariffs to collectively pressure the US.
- There is interest in comparing outcomes: EU’s immediate retaliation vs UK/China’s initially more cautious responses, and early evidence from Canada that fast, symmetric retaliation may work better.